South Korea's Samsung Electronics posted its second-quarter 2022 profit, its best since 2018.
According to Arabiya Net, the company made those profits by bolstering strong memory chip sales to server customers, even as demand for inflation-affected smartphone manufacturers declined.
The shares of the world's largest maker of memory chips and smartphones rose 2.5% after announcing preliminary results for the second quarter of this year, compared to a 1.5% increase in the broader market. .
Samsung reported operating profit of 14 trillion won ($10.7 billion), up 11% from 12.57 trillion won a year earlier, and slightly below SmartEstate's estimate. from Refinitiv to an operating profit of 14.45 trillion won.
Revenue rose 21% to 77 trillion won, in line with estimates.
Samsung's strong quarter comes as other chip makers warn of a looming glut with customers who have hoarded them during the pandemic to meet rising demand from home workers. .
High inflation, concerns about a slowdown in key markets, the war in Ukraine and the lockdown in China to combat COVID-19, analysts said, have all slowed smartphone sales.
Samsung's profits have been protected as large US tech companies, such as Alphabet's Amazon, Microsoft and Google affiliates, and META continue to buy chips to meet cloud demand.
The strong dollar, which reached a 20-year high, may also have helped support Samsung's chip profits in the second quarter, as Samsung chip sales are taking place. Primarily in dollars, while declaring earnings in Korean won, a strong dollar translates to higher earnings.
Samsung's smartphone shipments are estimated in the second quarter at 62 million to 64 million, 5 to 8 percent lower than estimates, said Counterpoint Research. March, as inflation affected the demand for smartphones.
It is noteworthy that Samsung shipped 74 million smartphones during the first quarter of 2022.
